The present invention meets the above-identified need by providing a system, a method, and a computer program product that allows an owner or holder of a financial transaction account (“account holder”) to set use limits on a base card associated with the transaction account as well as to obtain supplemental cards associated with the transaction account, in which the supplemental cards have use limits set by the account holder. The use limits are referred to herein as “holder-defined limits.” Whereas conventional supplemental cards typically have the same purchasing limits as their corresponding base card, the present invention enables an account holder to define or set limits on the base card and separately set limits on each supplemental card associated with the account holder's transaction account.
An advantage of the present invention is that it allows the account holder, who may have been hesitant to give a supplemental card to another user for fear that the supplemental card will be used for inappropriate purchases by the other user, to have the comfort of knowing that the supplemental card may only be used to pay for purchases within the limits set by the account holder. This has the beneficial effect of increasing the number of cards in circulation, by providing a measure of security for account holders to give supplemental cards to, for example, children, spouses, domestic employees, etc., some of whom otherwise would not have been able to obtain cards on their own. More specifically, an issuer that provides its account holders with the flexibility to obtain supplemental cards with holder-defined limits is likely to increase the number of its type of card in circulation compared with an issuer that does not provide such flexibility.
Another advantage of the present invention is that it enables self-imposed limits to be set by account holders on their own base cards. This serves to reduce the risk of for example, impulsive purchases on high-priced items, etc.
A further advantage of the present invention is that it allows a merchant to promote corporate usage of its type of card, by enabling corporations to set customized limits for employees to whom corporate cards are issued. For instance, for each supplemental card, limits may be set on travel expenses, travel destinations, and/or the like.
According to the present invention, a system, a method, and a computer program product is provided for enabling an owner of a financial account to set authorization limits on use of a financial transaction instrument corresponding to the financial account. A computer receives information identifying the owner, the financial account, and the financial transaction instrument corresponding to the financial account, and also receives an owner-defined authorization limit on use of the financial transaction instrument. The authorization limit is stored in a database, which is accessed when there is a request to authorize a purchase to be made with the financial transaction instrument.
The owner of the financial account may communicate with the computer via a Web site, an automated call program, a kiosk, or the like to modify an authorization limit on use of an existing financial transaction instrument or to set an authorization limit on use of a newly requested financial transaction instrument.
Further features and advantages of the present invention as well as the structure and operation of various embodiments of the present invention are described in detail below with reference to the accompanying drawings.